NHA duping customers

The National Housing Authority owes customers K65,034,052 in form of advances made to the authority for houses which were not completed.

And NHA has been making losses since 2012.

According to the Auditor General’s report on Accounts of Parastatal Bodies and other Statutory Institutions for the year ended 2015, 14 NHA customers had even won a legal suit against the authority.

“As of December 2014, the Authority had accumulated liabilities of K65,034,052 in form of advances made by customers to the authority whose houses had not been completed. A review of a report dated January 2016 on litigations revealed that 14 of its customers under the Presale Scheme had commenced legal action against the authority for failure to deliver completed houses. In this regard, the authority was ordered by the court to complete the houses or to pay the customers. As of October 2016, the authority had not complied with the court orders,” read the report in part.

The report also stated that NHA did not avail details of the amounts needed to finish the houses under litigation.

“Further, the authority did not avail details such as the amounts required to finish the houses under litigation, actual litigation related costs such as damages and interests and amounts of rental refunds incurred and paid,” read the report in part.

And the Auditor General revealed that NHA recorded an operating profit margin of negative 14% in 2012, negative 4% in 2013 and it worsened to negative 43% in 2014.

The report further revealed that income reduced over the three years under review by K13, 545,629 from K49, 138,592 in 2012 to K35,602,963 in 2014, attributing the loss to the reduction in income without proportional reduction in expenditure.